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Photovoltaic purchase: France sued for tariff changes

13/09/2022
Categories: Sectors

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France is being sued for non-compliance with the investor protection provisions set out in the Energy Charter Treaty (ECT). The French authorities have modified the photovoltaic purchase prices.

The downward revision of the purchase prices for photovoltaic electricity decided by the French government in 2020 is on the company's agenda German Encavis, a renewable energy producer (EnR), and three of its subsidiaries (Capital Stage Solar IPP, Société Centrale Photovoltaique d'Avon-les-Roches, Le Communal Est Ouest). According to the Stop Ceta-Mercosur national collective, these companies have initiated arbitration proceedings against France for non-compliance with the investor protection provisions set out in the Energy Charter Treaty (TEC).

This controversial treaty allows an investor to take action against the State hosting his investment before an arbitral tribunal if he considers himself aggrieved by one of its decisions. He is accused of blocking energy transition policies insofar as he protects investments in fossil fuels. A new illustration of this has just been given by the condemnation by Italy to pay 190 million euros to the oil company Rockopper following the ban on exploiting an oil field in the Adriatic Sea.

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